Continuing Cookie Chronicle 05 b1-b2, c, dl-d2, e-f (Part Level Submission) Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Kinsel Supply Cohas approached Natalie to become the exclusive distributor of these fine mbers in her state. The current cost of a mover is approximately $575, and Natale would sell each one for $1,150 Natalie comes to you for advice on how to account for these micers. Each appliance has a serial number and can be easily identified Natalie asks you the following questions. 1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" "I've learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory, which system do you think is better? Which one would you recommend for the type of inventory that I want to sel?" "How often do I need to count inventory maintain it using the perpetual system? Do I need to count inventory at 7" 3. The trial balance for cookie creations as on December 31, 2015 is as follows: COOKTE CREATIONS Post-Closing Trial Balance December 31, 2015 Account Debit Credit $1,100 Accounts Receivable Supplies Prepaid Insurance 1,210 Equipment 1.200 Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Unearned Service Revenue Interest Payable 2.000 Notes Payable Common Stock 1,529 Retained Earrings LONG "Would you consider these mixers to be inventory or should they be classified "I've learned a little about keeping track of inventory using both the perpetual recommend for the type of inventory that I want to sell?" "How often do I need to count inventory if I maintain it using the perpetual syst 3. The trial balance for cookie creations as on December 31, 2015 is as follows: COOKIE CREATIONS Post-Closing Trial Balance December 31, 2015 Account Debit Credit Cash $1,180 Accounts Receivable 875 Supplies 350 Prepaid Insurance 1,210 Equipment 1,200 Accumulated Depreciation Equipment $40 Accounts Payable 75 Salaries and Wages Payable 56 Unearned Service Revenue 300 Interest Payable 15 Notes Payable 2,000 Common Stock 800 Retained Earnings 1,529 $4,815 $4,815 In the end, Natalie decides to use the perpetual inventory system. The following transactions happe Jan. 4 6 7 Bought five deluxe mixers on account from Kzinski Supply Co. for $2,875, FOB shipping pol Paid $100 freight on the January 4 purchase. Returned one of the mixers to Kzinski because it was damaged during shipping. Kzinski issue January 6 for one mixer Jan. 4 Bought five deluxe mbrers on account from King Supply Co. for $2.875, FOB shipping point, terms 30 6 Paid $100 freight on the January 4 purchase 7 Returned one of the mixers te krinski because it was damaged during shipping Kinskissues Cookie Creations credit for the cost of mixer plus $20 for the or mixer plus 5.20 for the cost of freight that was paid on January 6 for one mixer 8 Collected $375 of the accounts receivable from December 2015 12 Three deluxe mixers are sold on account for $3,450, FOB destination, terms 1/30 (Cost of goods sold is $595 per mixer.) 14 Paid the $75 of delivery charges for the three mixers that were sold on January 12 14 Bought four deluxe mixers on account from Kisi Supply Co. for $2,300, FOB shipping point terms 130 17 Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $1,000 cash in Cookie Creations in exchange for common stock 18 Paid $80 freight on the lanuary 14 purchase. 20 Sold two deluxe mixers for $2,300 cash. (Cost of goods sold is $595 per mover.) 28 Natalie issued a check to her assistant for all the help the asustant has given her during the month. Her assistant worked 20 hours in January and is also paid the $56 owed at December 31, 2015. (Natalie's assistant earns $8 an hour.) 28 Collected the amounts due from customers for the January 12 transaction 30 Paid a $145 utility bill ($75 for the December 2018 accounts payable and $70 for the month of January). 31 Paid Krisdal amounts due 31 Cash dividends of $750 are paid. y try is select "entry ( 1) Prepare the January 2016 transactions (Credit account titles are automatically indented when amount is entered. Do not indent ma for the account titles and enter for the amounts Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation PIEGIE URUGEY ZULO GUSGUIS. LEUR LULU DE GULLN HERE W E RE for the account titles and enter for the amounts. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit PR by Study (To record sales revenue) (To record cost of goods sold) Q Search or type URL (To record cost of goods sold) (To record delivery charges paid) (To record purchases made) (To record sales revenue) Q Search or type URL 6 (To record salaries and wages paid) (To record amount collected from customers) (To record payment made to creditor) (To record dividend) Click if you would like to Show Work for this question: Open Show Work Search or type URL Continuing Cookie Chronicle 05 b1-b2, 4, 01-02, e-t (Part Level Submission) Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of Fine European leers. The owner of Supply Co. has approached Natalie to become the exclusive distributor of these fine mixers in her state. The current cost of amber is approximately $575, and Natalie would sel each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified BACK NEXT Natalie asks you the following questions. 1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" "I've learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?" 3. "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all The trial balance for cookie creations as on December 31, 2015 is as follows: COOKIE CREATIONS Post-Closing Trial Balance December 31, 2015 Account Debit Credit Cash $1,180 Accounts Receivable Supplies 350 Prepaid Insurance 1,210 Equipment 1,200 Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Unearned Service Revenue Interest Payable Notes Payable 2.000 Common Stock Retained Earnings 14,815 54,615 $40 300 Q Search or type URL The trial balance for cookie creations as on December 31, 2015 is as follow COOKIE CREATIONS Post-Closing Trial Balance December 31, 2015 Account Debit Credit Cash $1,180 Accounts Receivable 875 Supplies 350 Prepaid Insurance 1,210 Equipment 1,200 Accumulated Depreciation-Equipment $40 Accounts Payable Salaries and Wages Payable 56 Unearned Service Revenue 300 Interest Payable 15 Notes Payable 2,000 Common Stock 800 Retained Earnings 1,529 $4,815 $4,815 75 In the end, Natalie decides to use the perpetual inventory system. The following trans Jan. 4 Bought five deluxe mixers on account from Kzinski Supply Co. for $2.875, FC 6 Paid $100 freight on the January 4 purchase. 7 Returned one of the mixers to Kzinski because it was damaged during shipping January 6 for one mixer. Collected $375 of the accounts receivable from December 2015 12 Three deluxe mixers are sold on account for $3,450, FOB destination, terms 1/3 1 Paid the $75 of delivery charges for the three mixers that were sold on January esc Retained Earnings 1,529 $4,815 $4,815 CALCULATOR PRINTER VERSION In the end, Natalie decides to use the perpetual inventory system. The following transactions happen during the month of January Jan. 4 bought five deluxe mixers on account from Kzinski Supply Co. for $2,875, FOB shipping point, terms V30. 6 Paid $100 freight on the January 4 purchase. 7 Returned one of the mixers to Krinski because it was damaged during shipping. Kzinski issues Cookie Creations credit for the cost of mixer plus 520 for the cost of freight that was January 6 for one mixer 6 Collected $375 of the accounts receivable from December 2015 12 Three deluxe Mixers are sold on account for $3,450, FOB destination, terms 30. (Cost opods sold is $595 per mixer.) 14 Paid the $75 of delivery charges for the three mixers that were sold on January 12. 14 Bought four une mixers on account from Kinski Supply Co. for $2,300. FOB shipping point terms 130. 17 Natalie is concerned that there is not enough cash available to pay for all of the m ers purchased. She invests an add $1.000 cash in Cookie Creations in the c o ck 16 Paid strenght on the January 14 purchase. 20 Sold two deluxe m ers for $2,300 cash. (Cost of goods sold is $595 per mixer) 28 de check to her assistant for all the help the assistant has given her during the month Hers tworked 20 eur a ry and the war 31. 2015. Catali's carns 15 an hour.) 28 Collected the amount du from customers for the January 12 transaction 30 Paida 5145 575 for the December 2016 accounts payable and so for the month of January). 31. Ca n do 5730 e paid triori Debit Search or type URL 00- - I - - A Done e In the end, Natalie decides to use the perpetual inventory system. The following transactions happen during the month of January. Jan. 4 Bought five deluxe mixers on account from Kzinski Supply Co. for $2,875, FOB shipping point, terms 1/30. 6 Paid $100 freight on the January 4 purchase. 7 Returned one of the mixers to Kzinski because it was damaged during shipping. Kind issues Cookie Creations credit for the cost of mixer plus $20 for the cost of freight that was paid on January 6 for one mixer. 8 Collected $375 of the accounts receivable from December 2015. 12 Three deluxe mixers are sold on account for $3,450, FOB destination, terms 130. (Cost of goods sold is $595 per mer.) 14 Paid the $75 of delivery charges for the three mixers that were sold on January 12. 14 Bought four deluxe mixers on account from Kzinski Supply Co. for $2,300, FOB shipping point, terms 1/30 17 Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $1,000 cash in Cookie Creations in exchange for common stock 18 Pald $80 freight on the January 14 purchase. 20 Sold two deluxe mixers for $2,300 cash. (Cost of goods sold is 5595 per mixer.) 28 Natalie issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $56 Owed at December 31, 2015. (Natalie's assistant earns $8 an hour.) 28 Collected the amounts due from customers for the lanuary 12 transaction 30 Paid a $145 utility bill (575 for the December 2018 accounts payable and $70 for the month of January). 31 Paid Kinski all amounts due. 31 Cash dividends of $750 are paid